McConnell: No chance for a government shutdown. GOP senators are holding up a continuing resolution to keep the government operating past Friday, but Minority Leader Mitch McConnell promises it all will get worked out in time. “We’ll process a few amendments before doing the short-term CR,” McConnell says, “There is no danger of a government shutdown.”
Talks grow louder for federal gas tax holiday. The White House is trying to decide whether to support a call by and some Senate Democrats for a federal gas tax holiday. Democrats up for reelection want to suspend the 18 cent per gallon tax through the end of 2022. Key questions: Who would benefit more, producers or consumers? Where will the money come from to pay for much-needed infrastructure? When will elected officials be willing to end the holiday? And what ever happened to worries about climate change?
Should Congress trade TANF for a child allowance? TPC’s Elaine Maag and Urban Institute colleague Heather Hahn examine Sen. Mitt Romney’s Family Security Act. Romney would repeal TANF (Temporary Assistance for Needy Families) but create a universal allowance of up to $1,250 per month for a household. But many of the most financially vulnerable families would be better off with TANF and the expanded Child Tax Credit than with Romney’s alternative.
Doing good to…reduce taxes. Last year, Elon Musk sold about $16.4 billion worth of Tesla stock. We learned yesterday he gave about $5.7 billion of his company’s shares to unnamed charities. That will significantly lower what would be a very large 2021 tax bill.
New Mexico may soon see tax cuts. With an expected surplus of $1.6 billion, the House and Senate are advancing similar tax cuts. The House bill would cut taxes by $385 million and include a repeal of taxes on Social Security income for middle-income retirees, a tax credit of up to $175 per child, and a $1,000 tax credit for full-time hospital nurses.
Nebraska lawmakers would end its tax on Social Security Income. A Republican senator introduced a bill to eliminate the tax on Social Security income by 2025. He argues the state can afford the lost revenue thanks to current budget surpluses and a strong economic forecast.
Colorado lawmakers advance repeal of taxes on diapers and menstrual products. The House Finance Committee passed a measure to exempt from tax the “sales, storage, use and consumption of” diapers and feminine hygiene products starting in 2023. Colorado already exempts food and medicine from sales and use tax.
Oklahoma lawmakers move to repeal its grocery tax. A House bill to eliminate the 4.5 percent tax on groceries over three years has bipartisan support. It would reduce annual revenue by $300 million.
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